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Land Heterogeneity And The Effectiveness Of Cap Set‐Aside

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  • Hild Rygnestad
  • Rob Fraser

Abstract

The May 1992 reform of the CAP included a choice for farmers between set‐aside options. This paper examines the question of whether or not this choice feature has exacerbated the slippage problem associated with the set‐aside policy in the context of heterogeneous land quality. A model is developed which provides a basis for determining both a farmer's preferred choice of set‐aside option, and the implications of this choice for output reduction. A numerical application of the model suggests a strong tendency for farmers to choose the less effective option in terms of reducing output.

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  • Hild Rygnestad & Rob Fraser, 1996. "Land Heterogeneity And The Effectiveness Of Cap Set‐Aside," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 255-260, January.
    • Handle: RePEc:bla:jageco:v:47:y:1996:i:1-4:p:255-260
    DOI: 10.1111/j.1477-9552.1996.tb00689.x
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    References listed on IDEAS

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    1. Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    2. Quirino Paris, 1992. "The von Liebig Hypothesis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 1019-1028.
    3. D. Roberts & J. Froud & R. W. Fraser, 1996. "Participation In Set Aside: What Determines The Opting In Price?," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 89-98, January.
    4. J. Hope & J. Lingard, 1992. "The Influence Of Risk Aversion On The Uptake Of Set‐Aside: A Motad And Crp Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 401-411, September.
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    Cited by:

    1. Moro, Daniele & Sckokai, Paolo, 1999. "Modelling the CAP Arable Crop Regime in Italy : Degree of Decoupling and Impact of Agenda 2000," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 53.
    2. Rob Fraser, 2009. "Land Heterogeneity, Agricultural Income Forgone and Environmental Benefit: An Assessment of Incentive Compatibility Problems in Environmental Stewardship Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 190-201, February.
    3. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants for fallowing land: The case of Kosovo," 2009 Conference, August 16-22, 2009, Beijing, China 51626, International Association of Agricultural Economists.
    4. Mallawaarachchi, Thilak & Quiggin, John C., 2001. "Modelling socially optimal land allocations for sugar cane growing in North Queensland: a linked mathematical programming and choice modelling study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-27.
    5. David A. Fleming, 2014. "Slippage effects of land-based policies: Evaluating the Conservation Reserve Program using satellite imagery," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 167-178, November.
    6. Behrendt, Karl & Brown, Colin & Qiao, Guanghua & Zhang, Bao, 2022. "Assessing the opportunity costs of Chinese herder compliance with a payment for environmental services scheme," Ecological Economics, Elsevier, vol. 193(C).
    7. Di Falco, Salvatore & Perrings, Charles, 2005. "Crop biodiversity, risk management and the implications of agricultural assistance," Ecological Economics, Elsevier, vol. 55(4), pages 459-466, December.
    8. Rob Fraser, 2001. "Using Principal‐Agent Theory to Deal with Output Slippage in the European Union Set‐Aside Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 29-41, May.
    9. Iain Fraser & Robert Waschik, 2005. "Agricultural Land Retirement and Slippage: Lessons from an Australian Case Study," Land Economics, University of Wisconsin Press, vol. 81(2).
    10. Thomas, Alban & Chakir, Raja, 2020. "Unintended consequences of environmental policies: the case of set-aside and agricultural intensification," TSE Working Papers 20-1066, Toulouse School of Economics (TSE).
    11. Kuroda, Yoshimi & Abdullah, Naziruddin, 2003. "Impacts of Set-Aside and R&E Policies on Agricultural Productivity in Japan, 1965-97," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 5, pages 1-23.
    12. Rob Fraser & Hild Rygnestad, 1999. "An Assessment of the Impact of Implementing the European Commission's Agenda 2000 Cereal Proposals for Specialist Wheatgrowers in Denmark," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 328-335, May.
    13. David Colman & Pavel Vavra, 2002. "The Optimal Allocation of Land between Alternative Support Schemes: an Exploration of Claims for Arable Area Payments," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 283-298, July.
    14. Jordan Hristov & Yann Clough & Ullrika Sahlin & Henrik G. Smith & Martin Stjernman & Ola Olsson & Amanda Sahrbacher & Mark V. Brady, 2020. "Impacts of the EU's Common Agricultural Policy “Greening” Reform on Agricultural Development, Biodiversity, and Ecosystem Services," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 716-738, December.
    15. Gracia, Azucena & de Magistris, Tiziana & Casado, Jose Maria, 2008. "The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6590, European Association of Agricultural Economists.
    16. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants of the Fallowing Decision in Kosovo," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51072, Agricultural Economics Society.
    17. Elena Ianchovichina & Maros Ivanic & Will Martin, 2010. "The growth of China and India: implications and policy reform options for Malaysia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(2), pages 117-141, November.
    18. Rob Fraser, 1997. "Land Heterogeneity And The May 1992 Reform Of Cap Cereal Price Support," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 65-70, January.

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